The Senators received defenseman Marc Methot from the Columbus Blue Jackets for Foligno, who was coming off a career-best 47 points for Ottawa last season.
The 24-year-old racked up 61 goals and dished out 87 assists in five years with the Sens. Methot, meanwhile, had one goal and six assists for Columbus last season and was a minus-11 for the lowly Blue Jackets, the league's worst team.
The Senators paid $1.25 million for Latendresse, who has struggled with concussions and other injuries in two seasons with the Minnesota Wild -- playing in only 27 games over the past two seasons because of the varying health problems.
He had a breakout season in 2010-11, however, exploding for 25 goals in 55 games with the Wild after a mid-season trade from the Montreal Canadiens.
Latendresse has scored 81 goals with 56 assists in 314 games over six years with the Canadiens and Wild.